Friedlund v. Cunnally

48 N.E.2d 747, 319 Ill. App. 36, 1943 Ill. App. LEXIS 703
CourtAppellate Court of Illinois
DecidedMay 5, 1943
DocketGen. No. 42,259
StatusPublished

This text of 48 N.E.2d 747 (Friedlund v. Cunnally) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Friedlund v. Cunnally, 48 N.E.2d 747, 319 Ill. App. 36, 1943 Ill. App. LEXIS 703 (Ill. Ct. App. 1943).

Opinion

Mr. Justice Hebel

delivered the opinion of the court.

This is an appeal by the plaintiff from that part of the order vacating and setting aside judgment by confession against certain defendants upon five notes secured by junior mortgage. The makers of the notes conveyed title to the real estate, which stood as security for the payment of the notes. Before maturity and by mesne conveyances, all of which were subject to the junior mortgage, the title was conveyed to George W. Stilwell and his wife. Stilwell made payments upon the notes regularly until the date of maturity and for approximately three years thereafter. During the period of his ownership he executed a deed in trust upon certain uses and for certain beneficiaries to the Builders and Merchants State Bank, and the receiver of that bank reconveyed to Stilwell eighteen months later. During this period there was no break in the chain of payments made by Stilwell and no written extension agreements were executed nor did Stilwell execute any written agreement to pay the indebtedness.

The real estate which stood as security for the payment of the notes was later lost by Stilwell through foreclosure of the first mortgage. Judgment was confessed upon the junior mortgage notes more than ten years after the date of maturity but less than ten years after the last payment made by Stilwell. Upon motion and petition, pleading the statute of limitations as a bar to the plaintiff’s action, the court vacated the judgment by confession entered, with leave to appear and defend and stand as security. Trial was then had, with testimony taken and argument of counsel ■ received, whereupon the court in due course entered an order upon finding, that judgment by confession be vacated and set aside as to the defendants Lawrence Cunnally and Marie Cunnally and judgment to stand in full force and effect against remaining defendants who did not answer. Plaintiff filed notice of appeal and also filed his appeal bond and perfected this appeal.

From the fact's as they appear in the record it appears that on or about March 22, 1926, at Chicago, Illinois, the defendants, appellees, Lawrence Cunnally, Marie Cunnally, and others, signed as maker five judgment notes, all dated March 22, 1926, and each payable to bearer in the sum of $2,570, together with interest thereon at the rate of 6 per ¿ent per annum, payable monthly. All of the notes matured and became due on November 22, 1929 and each and all of the notes were secured by a junior mortgage on real estate located in Chicago, Illinois.

It further appears from the record that on or about the 30th day of June, 1926, the defendants Lawrence Cunnally, Marie Cunnally, and others, by warranty deed conveyed their title to the real estate which stood as security for the payment of the notes to Emil Fagerstrom and his wife, who took title subject to the junior mortgage. By mesne conveyances, all of which were subject to the same junior mortgage, the title to the aforementioned real estate was conveyed to George W. Stilwell and his wife on or about the 12th day of April, 1928.

Subsequent to their conveyance to Emil Fagerstrom no one of the defendants at any time ever made payment on the indebtedness evidenced by their several judgment notes, although defendants’ successors in title made frequent payments on account of principal and interest.

Oil or about the 11th day of March, 1932, George W. Stilwell made his last payment on account of principal and interest to the then holder and owner of the aforementioned five judgment notes. On or about the 5th day of May, 1941 judgment by confession was entered in favor of the plaintiff, in the amount of $16,686.66 and costs. Execution issued on or about May 9, 1941.

It further appears from the record that upon motion of defendants the court entered an order on or about June 4, 1941 to vacate judgment by confession entered with leave to appear and defend, judgment to stand as security, the petition to stand as affidavit of defense, and the execution was stayed.

Subsequently, on or about September 10, 1941, an order was entered giving leave to file a stipulation of facts instanter, and same was filed with the court on that date; that trial was had and testimony was submitted by the plaintiff to prove the dates of payment made upon the indebtedness.

On January 26,1942, the trial court entered an order upon finding that judgment by confession of May 5, 1941 be vacated and set aside as to defendants and judgment to stand in full force and effect against the remaining defendants.

It appears that the parties stipulated, by written stipulation filed in this cause, that the defendants signed as makers of the five judgment notes on which judgment was confessed. The notes are all dated March 22, 1926, and are each payable to bearer in the amount of $2,570 each, with interest thereon at 6 per cent per annum payable monthly, and that they all matured and became due on November 22, 1929; that all of the notes were secured by a junior mortgage on real estate in Cook county; that on June 30, 1926, the defendants conveyed their title to the real estate which stood as security for the payment of the notes to one Fagerstrom and wife, and that by mesne conveyances the title to the real estate was conveyed to one George Stilwell; that all of the conveyances were subject to the junior mortgage securing the notes.

At the trial of the case George W. Stilwell in the course of his examination testified that he had never had any dealings with the Cunnallys; they never told him at any time to make any payment of principal or interest on the second mortgage; that he made payments after he took over the building. The Cunnallys admitted signing the notes and the ownership of the real estate in 1926; that in 1926 they sold it and thereafter had no further connection with it and paid no principal or interest on the note after they parted with the title and authorized no one to pay principal or interest.

From the briefs that were filed the defendants’ theory of the case does not appear in plaintiff’s brief, and is briefly stated as follows: Defendants’ theory is that payments made by the mortgagors’ grantee or successor grantees cannot' toll the statute of limitations as to the mortgagors or otherwise affect their liability in an action on the notes, and even though payments were made by remote' grantees of the defendants (mortgagors) no implied authority arises so as to bind the defendants and extend their liability; further, that such remote grantees were not the agents of the defendants (mortgagors) for the purpose of making a new promise which would toll the statute of limitations as against them, and that a partial payment of principal and interest does not arrest the statute of limitations in an action at .law on the notes.

It is further suggested by the defendants that the power in the grantees to make payment on the said mortgage is exclusive and different from the right to make a new promise which would bind the defendants; that such payments if made by the grantees might keep the debt alive and, consequently, keep the mortgage lien valid so as to authorize a foreclosure, which is a proceeding in rem against the property, but personal liability of the makers of .the note cannot be extended or imply a promise on the part of the grantees so as to extend liability of the mortgagors beyond the regular period of limitations.

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Bluebook (online)
48 N.E.2d 747, 319 Ill. App. 36, 1943 Ill. App. LEXIS 703, Counsel Stack Legal Research, https://law.counselstack.com/opinion/friedlund-v-cunnally-illappct-1943.